Balancer, a decentralized exchange and automated market maker, has proposed an orderly wind-down of its protocol. The decision follows a restructuring effort that failed to generate sufficient revenue after a $128 million exploit in November 2025.
CEO Marcus Hardt noted that while the restructuring successfully reduced costs and delivered new products, the v3 version failed to replace legacy v2 revenue. Monthly protocol revenue dropped from $1.13 million in October 2025 to $56,781 in August 2026.
The proposal includes a phased shutdown starting next month, with liquidity providers expected to exit by October 30. The protocol will transition to withdrawal-only mode by November 1, with $400,000 allocated to manage the wind-down process.
The remaining treasury, valued at over $9 million, will be distributed to BAL tokenholders on a pro-rata basis. The first distribution is scheduled for May 2027, followed by subsequent distributions of remaining funds.
A governance vote on the proposal is scheduled for September 25–29. If approved, the DAO will be wound down, and a small team will oversee the transition. If rejected, the current operating framework will remain in place.
